Credit unions are different from banks and other institutions of finance in that people who have deposits and accounts in the credit unions are the owners of the credit unions which is not the case with banks. Without regard to the amount of money a person has invested in credit unions, each person has one vote in a democratic system for issues regarding officers and other policies of the credit union.

The Board of Directors of credit unions is a group of volunteers who determine interest rates and other matters and are elected by and from the members themselves. Banks have a Board of Directors who are paid and make all the decisions of the bank. Banks are driven by profit and provide few benefits for the customers of the banks. Banks are their own financial institutions and any person can open an account with a bank. Customers have no voting privileges and cannot make decisions within the organization.
Credit unions, on the other hand, are not-for-profit organizations and any profit the credit unions may make after overhead costs goes directly back to benefit their members.

In addition with credit unions, deposits of and borrowing of money can only be done by members of the credit union. Because of this, superior member service has been one of the guiding principles of credit unions as well as being committed to helping members improve their personal financial situations. With regard to microfinance institutions, there is a broader range of loan and savings opportunities at credit unions with cheaper costs to their members.

The services of finance which credit unions offer are very much the same as banks except they are called by different names. For example, savings accounts are called share accounts, checking accounts are called share draft accounts, and certificates of deposit are called share term certificates. Credit unions offer online banking as do regular banks.